Financial Reporting in Canadian Private Companies: A Study on the Quality and Use of Financial Information

Principal Investigator: Dr. Oriane Couchoux
Project Title: Financial Reporting in Canadian Private Companies: A Study on the Quality and Use of Financial Information
Funder: SSHRC Partnership Engage Grant
Duration: 2 year

This research aims to investigate financial reporting processes within private, non-listed companies in Canada—a sector often overlooked in research compared to publicly traded companies. Financial information is vital for stakeholders to assess financial performance, evaluate financing opportunities, and understand the impact of organizations on their communities. In collaboration with the Accounting Standards Board (AcSB), the independent body with the authority to establish accounting standards for use by all Canadian entities outside the public sector, the project will explore the production and the use of financial information, stakeholders’ assessment of financial reporting quality in private organizations, as well as regulatory influences and standard-setting developments. The project addresses the need to broaden the focus beyond publicly listed companies, shedding light on the unique financial reporting practices and challenges faced by private, non-listed firms, and developing relevant accounting standards tailored to the needs of stakeholders.